Because we know taxes can be confusing, we’re here to clarify a few things.
Firstly, we use bank-level encryption techniques to protect your data. Secondly, we only authorize read-access to your investment transactions so that we can run our calculations on them. We do not actively store your data in order to profit off of it. We have no plans to monetize your data without your express consent. Lastly, we continuously test and monitor our systems to fortify our systems. Protecting your data is a top priority of ours.
No we are not. We are merely calculating estimated taxes based on user brokerage data. The calculations returned are only intended as a general estimate for yearly transactions and excludes state taxes and net investment income (NII) taxes. It does not include the potential effects of capital losses that may offset your capital gains. It does not apply to capital gains on certain business interests, houses, art or other investments with special capital gains tax rules. See a qualified tax advisor for details.
The wash-sale rule is an Internal Revenue Service (IRS) regulation that prevents counting a loss against gains. A wash sale occurs when you sell a security at a loss and, within 30 days before or after this sale, buy a "substantially identical" stock or security, or acquire a contract or option to do so. However, crypto is excluded from the wash sale rule as it is taxed in the same way as gold and real estate. You can read more about it using the link below.
We use the FIFO (First In, First Out) methodology to calculate the net gain or loss on every transaction. You can read more about it using the link below:
Every time you trade an equity (e.g. stocks) or crypto, you have to pay tax on the difference between the selling price and the price you bought it for (minus any exchange fees). This is known as a Capital Gains Tax and has to be paid in most countries such as the USA, UK, Canada etc. If your gains exceed your losses, then you have to pay capital gains tax. Otherwise, you can deduct up to $3,000 in losses this year and carry forward your remaining losses to future years.
Reconcile automatically calculates your short-term and long-term taxes from your equity and crypto transactions, finds existing and potential wash sale transactions, and estimates underpayment penalties! Think of Reconcile as a real-time calculator dedicated to keeping you on top of your capital gains taxes.
See your estimated taxes in seconds.Calculate my taxes